Key Highlights

  • Third quarter Revenue was USD 33.26 million against a USD 31.21 million estimate and USD 45.89 million last year.
  • Non-GAAP net loss per diluted share was USD 0.27 against a USD 0.33 estimate; the GAAP loss was USD 0.49.
  • Adjusted EBITDA was negative USD 1.0 million, GAAP net loss was USD 8.1 million, and GAAP gross Margin was 33.3%.
  • Fourth quarter guidance calls for total revenue of USD 56 million to USD 65 million including the acquired FastMile business.

Inseego Corp. (NASDAQ:INSG) closed the Acquisition of Nokia's Fixed Wireless Access business, known as FastMile, on October 1, and its third quarter results cover only the legacy business, now called Inseego North America. Chief executive Juho Sarvikas said the legacy Business delivered revenue and adjusted EBITDA within its guided range but that performance needs to continue to improve. Revenue was USD 33.26 million against an estimate of USD 31.21 million.

Priorities After the FastMile Close

Management described its near-term focus as execution while integrating FastMile with Inseego North America to operate as one global company. The chief executive said he has addressed engineering and product delivery issues raised last quarter, including by bringing in a new chief technology officer, and that a restructuring of the engineering function is underway. In October the company reduced headcount and contractor spend, and the company cited USD 8 million of annual spend reduction.

The FastMile business adds indoor, outdoor and millimeter-wave fixed wireless products and carrier relationships across Europe, the Middle East, Asia and Oceania. About 250 people associated with it now support global operations, and the company set up an international headquarters in Amsterdam and a development center in Athens. Nokia invested USD 10 million in cash for equity, provided a USD 10 million engineering payment, and committed up to USD 38 million in payments supporting first-year operations of the acquired business.

Financial Results

Total revenues were USD 33.26 million against USD 45.89 million. Mobile solutions revenue was USD 19.10 million against USD 16.04 million, and fixed wireless access solutions revenue was USD 4.18 million against USD 17.65 million. Software services and other revenue was USD 9.98 million against USD 12.21 million.

Gross profit was USD 11.09 million against USD 19.08 million. Operating costs and expenses were USD 18.26 million against USD 16.93 million. The operating loss was USD 7.17 million against income of USD 2.16 million. The net loss was USD 8.10 million against Net Income of USD 1.43 million.

Cash and Fourth Quarter Guidance

Cash and cash equivalents were USD 6.6 million at September 30, against USD 24.9 million at year end, and the company said additional Liquidity came from Nokia payments received in October.

Fourth quarter guidance is total revenue of USD 56 million to USD 65 million, made up of USD 21 million to USD 25 million from Inseego North America and USD 35 million to USD 40 million from FastMile. Adjusted EBITDA is guided at USD 0 million to USD 2 million, which includes Nokia support payments of USD 12 million to USD 14 million. The company said this updates and supersedes prior guidance.

Dates and Milestones Named

Revenue of USD 33.26 million sits alongside an adjusted EBITDA loss of USD 1.0 million, cash of USD 6.6 million and a guided fourth quarter revenue range of USD 56 million to USD 65 million. Third quarter guidance had been USD 28.0 million to USD 35.0 million of revenue.

Management named a few dated items: FastMile results enter consolidated figures beginning in the fourth quarter of 2026, shipments of a premium-tier MiFi to a Tier-1 carrier are scheduled for mid-2027, and two investor conferences are scheduled for November 17 and 18. The chief financial officer linked a return to profitability to lower spending and revenue growth.